Domestic sales boost Piramal Glass 3Q earnings

Piramal Glass Ceylon PLC, Sri Lanka’s only glass bottle manufacturer, saw its December quarter (3Q20) earnings surging amid higher domestic sales, stoked by festive season.

According to the interim financial accounts released to the Colombo bourse, the firm reported revenue of Rs.2.3 billion for the quarter under review, up from Rs.1.9 billion reported for the corresponding period, last year.

The improved top line boosted the firm’s earnings per share for the quarter to 25 cents or Rs.235.8 million compared to earnings of 12 cents or Rs.115.4 million reported for the same period, last year.

Piramal Glass in an earnings review said domestic sales grew 24 percent year-on-year (YoY) to Rs.1.5 billion while exports grew 10 percent YoY to Rs.804 million.

“The investment of over Rs.1 billion made on a sixth production line during the first quarter of this financial year has started paying dividends. This line helped the production to maximise its capacity utilisation and in turn to increase the overall production tonnage.

This additional capacity together with deferring of some export orders helped create space for the increased domestic demand to be catered during the festive season and also to yield maximum results,” the firm said.

During the quarter under review, Piramal Glass introduced several new products to its export market, which included a 750ml flint water bottle for the UK market and 1lt juice bottle for Mauritius market.

An attractive Cobalt blue of 330ml capacity was launched for Beer, whilst a whiskey bottle range in varied sizes of 180ml, 375ml and 750ml was launched in both flint and emerald green for the Indian market.

For the nine months ended December 31, 2019, Piramal Glass reported earnings of 35 cents or Rs.330.2 million compared to earnings of Rs.16 cents or Rs.153.8 million reported for the same period, last year.

The sales rose to Rs.5.8 billion from Rs.5.4 billion a year ago.

For 3Q20 gross profit margin increased to 23 percent from 21 percent YoY while for the nine months gross profit margin rose 20 percent from 16 percent YoY.

Piramal Glass Private Ltd holds 56.45 percent stake in Piramal Glass Ceylon as the controlling shareholder. Employee’s Provident Fund has 9.51 percent stake in the company being the second largest shareholder.